The Competition Commission of Pakistan (CCP) has recently granted approval to a merger within the Health Insurance and Health Takaful sector. The approved transaction involves the acquisition of 100% shareholding of M/s. EFU Health Insurance Limited by M/s. EFU Life Assurance.
EFU Life Assurance, a publicly listed company engaged in life insurance business, including ordinary life and pension fund business, is set to acquire EFU Health Insurance Limited, an unlisted public limited company specializing in selling health insurance and health takaful cover in Pakistan.
The acquisition will see EFU Life Assurance acquiring 100% shareholding of EFU Health from M/s. EFU Services (Private) Limited and six other shareholders. EFU Life will issue its own ordinary shares at a swap ratio to the current shareholders of EFU Health as part of the transaction.
Following a Phase 1 Review, the CCP has determined that the proposed transaction will not result in the acquirer attaining dominance in the relevant market after completion. Consequently, the merger has been authorized.
The approval of the acquisition marks a significant development in Pakistan’s health insurance and health takaful sector. It underscores the ongoing consolidation and strategic realignment within the industry, which has the potential to enhance services and offerings for customers.
The move reflects a broader trend of mergers and acquisitions within the insurance sector, aimed at optimizing operations and expanding market presence. With the approval granted, EFU Life Assurance is poised to strengthen its position in the health insurance market, furthering its commitment to providing comprehensive coverage and financial security to policyholders.
The merger is expected to contribute positively to the overall growth and stability of the health insurance and health takaful sector in Pakistan, ultimately benefiting consumers by fostering competition and innovation in service delivery.